Regular reports from businesses help company stakeholders – employees, stockholders, board members and customers – stay on the same page with their latest developments. The International Integrated Reporting Council (IIRC) has endorsed a new type of reporting method that would compile all the different aspects of a business, such as financial information and organizational composition, and include how they are interconnected.
According to a new IIRC report, many businesses have expressed support for these integrated reports, which are far more involved than their predecessors from even a decade ago.
“Integrated reporting brings together material information about an organization’s strategy, governance, performance and prospects in a way that reflects the commercial, social
and environmental context within which it operates,” according to the report. “It provides a clear and concise representation of how an organization demonstrates stewardship and how it creates and sustains value.”
The IIRC report traces the development of such reports from the 1980s, when information about finances, corporate governance and management, and a company’s environmental efforts were each reported as separate and distinct portals. Although these different components of a business have slowly come closer together since then, the IIRC hopes that a more integrated model develops over the next decade.
As this model evolves, business leaders will be better able to allocate their resources going forward. With a long-term plan in place, executives can see how their company fits into an increasingly global market.
In order for these reports to be successful though, businesses must hire financial professionals who employ long-term, strategic thinking in completing their responsibilities. From those holding CFO jobs to other individuals with jobs in finance, this mindset must be promoted throughout an organization. Financial professional recruiters can help companies identify these business leaders.